India Semiconductor Market: Key Trends & Investment Forecast by 2033

MARKET OVERVIEW

The India Semiconductor Market is estimated to be USD 53.2 Billion in 2024 and is projected to reach USD 161.0 Billion by 2033, growing at a CAGR of 12.45% during the forecast period 2025-2033. This growth is propelled by government initiatives like the Production Linked Incentive (PLI) and Make in India campaigns, increased electronics manufacturing, and rising demand from sectors such as AI, 5G, and electric vehicles.

STUDY ASSUMPTION YEARS
➤ Base Year: 2024
➤ Historical Year/Period: 2019-2024
➤ Forecast Year/Period: 2025-2033

INDIA SEMICONDUCTOR MARKET KEY TAKEAWAYS
➤ Current Market Size: USD 53.2 Billion in 2024
➤ CAGR: 12.45%
➤ Forecast Period: 2025-2033
➤ The India semiconductor market is transforming significantly, supported by strong government backing and policies encouraging domestic production.
➤ Major sectors driving demand include consumer electronics, telecommunications, electric vehicles, and industrial automation.
➤ The Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes stimulate investments and R&D.
➤ Planned semiconductor parks and increased local manufacturing aim to reduce import dependency.
➤ India is building capabilities beyond fabrication, including assembly, testing, and packaging for a comprehensive semiconductor ecosystem.

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MARKET TRENDS
The India semiconductor market is driven by the country's growing population, rising disposable incomes, and an expanding middle class boosting consumer demand for electronic devices such as smartphones, laptops, and smart gadgets. These factors, combined with the adoption of cutting-edge technologies like 5G, Internet of Things (IoT), and artificial intelligence (AI), create enormous opportunities for semiconductor companies to deliver advanced chips and components to meet evolving needs.

Digitization across multiple Indian industries including telecommunications, healthcare, automotive, and industrial automation is powering the semiconductor demand, facilitating digital infrastructure expansion nationally. Government initiatives under the 'Make in India' campaign encourage domestic semiconductor production through tax incentives and relaxed regulatory norms, attracting foreign direct investment and nurturing local manufacturing of electronic products.

Further, the global shift towards electric vehicles (EVs) and higher incorporation of renewable energy enhances market growth, as semiconductor components are critical in electric powertrains, battery management systems, and advanced driver-assistance systems (ADAS). This sectoral demand increase is strengthening the India semiconductor market size and its growth trajectory.

MARKET GROWTH FACTORS
Strong government support plays a central role in the market's growth trajectory, exemplified by initiatives such as the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes. These initiatives attract investment, promote research and development (R&D), and aim to build long-term capacity, helping India position itself as a global semiconductor hub. These policies provide tax relief and regulatory ease, facilitating an enabling environment for semiconductor manufacturing.

India's strategic importance in the global semiconductor landscape is rising due to the escalating demand in critical sectors like consumer electronics, telecommunications, and electric vehicles. Both global players looking to enter the Indian market and innovative domestic start-ups focused on chip design reinforce the industry's potential. The market scope is growing to encompass assembly, testing, and packaging, creating a full-stack semiconductor ecosystem.

The government-backed creation of semiconductor parks in states like Gujarat, Tamil Nadu, and Karnataka, combined with planned infrastructure investments and R&D clusters, support the domestic semiconductor ecosystem. Expansion of design and testing capabilities, workforce skill development, and supply chain resilience are essential growth drivers set to enable India to reduce its import dependence and become a reliable global supplier.

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MARKET SEGMENTATION

Breakup by Components
➤ Memory Devices: Includes devices responsible for data storage, integral to computing and electronic applications.
➤ Logic Devices: Semiconductor elements that perform logical operations, essential for processing tasks.
➤ Analog IC: Integrated circuits that process analog signals, key for interfacing real-world inputs and electronics.
➤ MPU: Microprocessor units that serve as central processors in electronic devices.
➤ Discrete Power Devices: Components handling power management and regulation in electronic circuits.
➤ MCU: Microcontroller units that control embedded systems and automation tasks.
➤ Sensors: Devices that detect environmental stimuli and convert them into electrical signals.
➤ Others: Covers additional components not categorized above.

Breakup by Material Used
➤ Silicon Carbide: A semiconductor material known for high thermal conductivity and efficiency.
➤ Gallium Manganese Arsenide: Specialized compound semiconductor delivering unique magnetic and electronic properties.
➤ Copper Indium Gallium Selenide: Material used primarily for thin-film photovoltaic applications and certain semiconductor parts.
➤ Molybdenum Disulfide: A material with potential in electronics for its electronic and mechanical properties.
➤ Others: Includes additional materials used in semiconductor manufacturing.

Breakup by End User
➤ Automotive: Semiconductors used in vehicle systems such as powertrains and advanced safety features.
➤ Industrial: Components serving automation, robotics, and manufacturing equipment.
➤ Data Center: Chips deployed in servers and data management infrastructure.
➤ Telecommunication: Semiconductor products for networking and communication systems.
➤ Consumer Electronics: Devices like smartphones, laptops, and smart gadgets.
Aerospace and Defense: Specialized semiconductor components for aviation and military applications.
➤ Healthcare: Chips utilized in medical devices and healthcare equipment.
Others: Additional end-use sectors for semiconductor applications.

Breakup by Region
➤ South India: Major region contributing to market growth.
➤ North India
➤ West and Central India
➤ East India
Each regional segment is analyzed for market potential and growth.

REGIONAL INSIGHTS
South India is identified as a dominant region in the India semiconductor market. Specific statistics such as market share or CAGR by region are not provided in the source. The region benefits from government-backed semiconductor parks and infrastructure investments, positioning it as a key hub in the country's semiconductor growth strategy.

RECENT DEVELOPMENTS & NEWS
In May 2025, the Indian cabinet approved a USD 435 Million semiconductor fabrication plant near Jewar Airport, Uttar Pradesh, a joint venture between HCL Group and Taiwan's Foxconn, aiming for commercial production by 2027. Also in May 2025, Ather Energy and Infineon Technologies signed an MoU to advance India's EV ecosystem by integrating Infineon's semiconductor solutions into Ather's scooters. Renesas Electronics signed MOUs under the Chips to Startup programme to support VLSI and embedded semiconductor education and startups, expanding its R&D presence in India. In March 2025, the Government reported that the PLI scheme attracted USD 18.72 Billion in investments, generated USD 162.84 Billion in production, USD 61.76 Billion in exports, and created 11.5 lakh jobs, underscoring strong industry development.

KEY PLAYERS
➤ HCL Group
➤ Foxconn
➤ Ather Energy
➤ Infineon Technologies
➤ Renesas Electronics

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This release was published on openPR.